Rick Perry “[doesn’t] care about” the fact that his new economic plan, dubbed, “Cut, Balance, and Grow,” is reported to give huge tax breaks to the wealthy, according to a CNBC interview.
Among other things, the plan Texas governor Perry unveiled proposes an 20 percent flat tax or the choice to keep one’s existing tax code. This, in addition to a massive 15 percent to the current corporate tax (bringing it down to 20 percent) is the cause of many questions, by the media and voters alike.
CNBC’s John Harwood fired some tough questions at Perry to explain the ins and outs of his plan.
Harwood asked, “Now if you cut the top rate to 20 percent, you eliminate estate, capital gain, dividend taxes… Year one, year two, you’re going to blow a huge hole in the deficit, right?”
Perry answered, “Look I’m looking long term… It’s going to require some hard decisions… You have to give incentives to those job creators… so that they can risk their capital and have a return on investment.”
Perry highlighted the need for sacrifices, responsible spending, and bringing back company investing from overseas, with the goal to “balance the budget by 2020.”
Perry’s fundamental philosophy is that giving corporations more potential earning power through lower taxes, combined with more investment from overseas will bring stability not only to the budget, but the economy and the American future.
According to a Wall Street Journal opinion piece, the Texas governor believes “taxes are too high, too complex,” and wants to make taxes so straightforward they could be filed “on a postcard.”
The ex-Air Force captain has garnered criticism from analysts, economics, and pundits, as a result of the implications of across-the-board tax cuts.
Jared Bernstein, a former economic advisor to Vice President Joe Biden, claimed that Perry has not been entirely forthcoming as to how his plan would raise revenue, according to the Washington Post.
Cuts in spending and social programs could put saddle middle-class earners with even more taxes, says Bernstein.
Governor Perry’s poll ratings have dropped in recent months, and the presentation of an innovative economic plan on his part could help his ratings among the American public.